Empirical Analysis of Risk Taking, Investment Efficiency and Diversification in Turkish Defined Contribution Pension Plans

This article empirically studies the risk levels of individual pension portfolios, investment efficiency and also diversification investors in Türkiye with a novel administrative data month-end snapshots December 2019. To examine taking behavior, level Turkish investors, we compute beta coefficients, total together idiosyncratic systematic risk, Sharpe Ratio, loss from under-diversification investors’ portfolios. The results indicate that substantial heterogeneity is evident portfolio contributes much more. We find significant evidence on inefficiency our suggest most design their portfolios inefficiently. losses widespread among as only quarter achieve reward profile better than domestic benchmark equity index BIST 100.